Gold shines upwards to Rs182,700 per tola
In Pakistan, it seems that the larger the depreciation in the rupee at domestic “open markets” – compared to interbank market – the higher the price of gold. photo: file
Gold hit a new all-time high at Rs182,700 per tola (11.66 gram) in Pakistan, as the metal emerged as a top asset offering the single largest return on investment of 41% in the outgoing year 2022.
Gold soared by Rs4,500 to Rs182,700 per tola on high demand for the commodity from local investors, a rise in the commodity price in global markets and a further deprecation of the rupee against the greenback.
Alone in the past one month, gold has gained 14.6% (or Rs23,500) cumulatively to date. “Gold posted a gain of 41% in 2022, rising from Rs108,200 (per 10 gm) to Rs152,700, after gaining 11% in 2021. In the local bullion market, gold rallied in line with the increase in the US dollar rate in the black market.
Currently, gold is valued at parity with the black market rather than the official rate, which is 10% lower. Although, in the international market gold remains more or less stable in 2022,” said Topline Research house in its report.
Amongst major asset classes widely followed by local investors and savers, gold, 1-year US dollar-denominated Naya Pakistan Certificate and US dollar remained the best performing assets in 2022, it said.
Rupee drops beyond 226
Meanwhile, the rupee, maintained a downtick on the sixth consecutive working day, falling beyond Rs226 against the dollar in the interbank market.
The local currency lost a fresh 0.15% (or Rs0.33) to an 11-week low at Rs226.15 against the greenback. “Holders of cash US dollar made a gain of 28% in 2022 as the official bank rate for US dollars rose from Rs177 at the end of 2021 to Rs226 now,” stated the Topline report.